Mute Button Not an Answer to Twitter Users' Problems: StockTwits.com

NEW YORK (TheStreet) -- Twitter (TWTR) is turning down the noise. But the quieter environment may not help reaccelerate growth, say StockTwits' users.

The micro-blogging company unveiled a new feature Monday that allows Twitter users to "mute" others on the site, effectively blocking certain users postings from appearing in feeds. Muted users do not receive any notification that they are muted, avoiding awkward conversations with semi-friends who feel the need to broadcast what they eat for lunch.

The muted user will still be able to fave, reply to, and retweet your Tweets; you just won't see any of that activity in your timeline," wrote Twitter product manager Paul Rosania in a post. "The muted user will not know that you've muted them, and of course you can unmute at any time."

Twitter shares climbed nearly 5.5% by 3p.m., though investors didn't cite "mute" as a reason. Most of the gains were attributed to a continued relief rally following last week's sharp, insider-driven, selloff. The $34 stock is still down more than 17% from May 5, the day before selling restrictions expired on Twitter insiders' shares.

Sentiment on Twitter remains majority bearish, according to StockTwits' analytics. About 54% of users feel negatively on Twitter.

Still, the news is a sign that Twitter is taking demands for more robust features seriously. The eight-year-old site has seen slowing user growth. And a Deutsche Bank survey earlier this year listed inability to find relevant information and lack of filters as a major reason why people quit Twitter or use the site less often.

In a blog post, Phil Pearlman, interactive editor at Yahoo! Finance and a former executive editor at StockTwits, said the new feature could hurt user loyalty by confusing relationships. One reason Twitter has grown so quickly and has a loyal following is that "everyone understands the rules," he wrote. People are followed or not. Now, a user will not know if their comments are really seen or if a follower has muted them.

Facebook lead social media shares lower Monday following reports that as many as 50 million of its users may have had their data compromised by a firm acting on behalf of the Donald Trump Presidential campaign.

Global stocks were on the defensive Monday as investors prepared for Wednesday's key move on interest rates and any signals it will provide for the direction of monetary policy heading into the second quarter.